The latest military attacks by the USA and Israel against Iran have brought the cryptocurrency-based parallel finance system, which the country has developed for years to circumvent sanctions, to the center of the global agenda again. Bitcoin mining and rapidly growing stablecoin usage, According to an article published on Coindesk It has become a critical financial infrastructure of the Iranian economy that operates outside the formal banking system.
Iran’s Crypto-Based Parallel Economy
The Iranian government legalized cryptocurrency mining in 2019, allowing licensed businesses to use subsidized electricity. In this model, miners sell the Bitcoin they produce directly to the Central Bank of Iran. The resulting BTC is used as an alternative payment instrument to the dollar in international trade.
According to estimates made in recent years, Iran’s share in global Bitcoin mining power varies between 2 percent and 5 percent. However, it is considered that a significant part of the activities take place in buildings that are not open to the public.
According to data from blockchain analysis company Chainalysis, the size of Iran’s crypto ecosystem reached $7.78 billion in 2025. This figure is similar to the gross domestic product of some smaller countries such as the Maldives or Liechtenstein.
Increasing Role of the IRGC
According to the report, Iran’s Revolutionary Guard Corps (IRGC) is taking on an increasingly central role in the country’s crypto economy. It is estimated that more than 50 percent of total crypto inflows originating from Iran in the last quarter of 2025 are associated with IRGC-linked addresses.
It is stated that the total value transferred to these addresses in 2025 alone exceeds 3 billion dollars. Experts state that only wallets on sanctions lists can be measured and the real volume may be much larger.
Stablecoins and USDT Usage
Along with Bitcoin mining, stablecoins also hold an important place in Iran’s financial strategy. A separate analysis by Elliptic found that the Central Bank of Iran has accumulated at least $507 million worth of USDT in 2025.
Although the aim of this step was to support the Iranian Rial and finance international trade, the currency has lost more than 96 percent of its value against the dollar.
Stablecoins are becoming one of the standard payment instruments in economies facing sanctions due to their low price volatility and fast transfer opportunity.
Financial Lifeline for the Public
Cryptocurrencies have become a critical financial tool not only for the state but also for Iranian citizens. There has been a significant increase in transfers from local crypto exchanges to personal wallets during the recent protests and internet blackouts.
In an environment of economic uncertainty and high inflation, many Iranians are turning to Bitcoin to protect their savings.
Energy Infrastructure Critical Risk Element
The sustainability of Iran’s crypto economy largely depends on its electrical infrastructure. Energy-intensive Bitcoin mining operations require a stable electricity supply to continue.
It is evaluated that mining production may decrease in the short term if the recent military attacks damage the energy grid. It is claimed that the Iranian state can produce Bitcoin at a cost of approximately $1,300 and earn significant income by selling it at market prices.
Financial Mechanism That Exceeds Sanctions
- The operating model is quite simple:
- Licensed miners produce Bitcoin.
- The produced BTC is transferred to the central bank.
- The central bank sends these assets to trading partners abroad and makes payments for machinery, fuel or consumer goods.
Although transactions take place on the blockchain, the identity of counterparties can often remain secret.
Global Controversies and Binance Claims
It is not always possible to completely hide crypto transactions. Recently, Binance has been at the center of controversy due to allegations that some researchers who warned about Iran-related fund movements were fired. Nine Democratic senators from the US Senate requested that the issue be examined by the Treasury Department and the Department of Justice.
Geopolitical Tensions Affect Crypto Activity
Chainalysis data reveals that crypto activity in Iran correlates strongly with military tensions and domestic political events. During periods of conflict or protest, users are seen withdrawing their assets from exchanges and moving them to personal wallets.
According to experts, a prolonged conflict could reduce mining capacity in Iran. However, due to the global nature of the Bitcoin network, hash power may be balanced by miners in other countries over time.
As a result, Iran’s cryptocurrency infrastructure is not just an alternative financial system used to circumvent sanctions; At the same time, it has become a parallel financial lifeline for both the state and citizens in an environment of economic crisis. However, increasing geopolitical risks make the future of this fragile ecosystem uncertain.
